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Bank of Japan's Kuroda praises 'big decision' by ECB

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Now Europe is following Japan and previously the US and will try to pump capital into the economy buy selling it cheaply to big players in the hope that some of it might trickle down and jump-start broader demand. Yet all they are really doing is creating another asset bubble (reflected by rising stock indexes) and only the top 1% will derive any benefit. Wages have been stagnant or decreasing for the past decade or more and supply-side economics will not change that. As the billionaire Warren Buffet said, "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

6 ( +8 / -2 )

Now Europe is following Japan and previously the US and will try to pump capital into the economy buy selling it cheaply to big players in the hope that some of it might trickle down and jump-start broader demand. Yet all they are really doing is creating another asset bubble (reflected by rising stock indexes) and only the top 1% will derive any benefit. Wages have been stagnant or decreasing for the past decade or more and supply-side economics will not change that.

Agreed, but luckily I am part of the one percent. However, I know that if the lower classes were to do better, and make more, I would too. Most people seem to think that the top income earners get their money by exploiting the lower classes. The opposite is true. For myself, most of my customers are working class people, and as their wages have decreased, or they have lost their jobs, my own income has decreased. When they do better, I do better, and the same is true in all forms of business.

The money will not trickle down, it hasn't done so in America or Japan, it will not do so in Europe either. Companies know that the boon from this added liquidity is ephemerial, and that the paper value it adds to their balance sheets has less substance than the ink used to print the numbers. This being the case, they dare not spend this "money", because it's value will certainly vanish should another "adjustment" occur in the markets, or Greece leaves the Eurozone, or any other of a hundred things should harm confidence in the markets.

As the billionaire Warren Buffet said, "There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

This is nonsense, there is no real "class warfare". The different classes get along remarkably well when left alone together. Class warfare rhetoric is used by politicians to create a sense of disparity and inequality in order to fool the more numerous poor to vote for them. The reality is simple, you can make as much money as you want, you just need to go out and do it. But many people are afraid of risk, or are averse to the thought and effort it takes to make money. These people prefer to blame their ill fortune on anyone but themselves, and the rich, being few in number, and having no voice other than their money, are an easy target. People love to hear that they are not responsible for their own problems, even when they know deep inside that they are. Politicians love such people, as they are easily fooled and controled. One need only look at what is happening right now in our world's economies to see the results of this nonsense.

So, the politicians in Europe, like politicians everywhere, are seeing that payday is coming. Not payday for themselves, but for the cost of generations of policies they have created to buy votes with. They have borrowed and borrowed to buy these votes, and though they have taxed to the point tbat they have driven businesses out of their countries, and robbed the people of a higher standard of living, it has not been enough. So now we see the last card being played. This last card is a Joker, and in tha past it has been played only by the most corrupt and inefficient third-world economies. This last card is simply governments printing money to pay bills. That we have come to such a situation shows that our governments have done an abysmally poor job of managing themselves, and that they have disregarded the trust that we gave them. So now, people will see the value of their wages, savings, and other assets robbed by the very governments who were entrusted to protect these things. I wonder why people aren't out rioting in the streets.

-7 ( +5 / -12 )

@sangetsu,

There will always be a 1%, but if the inequality gets too extreme, it is bad for all people. This trend toward extreme inequality which has happened in the US (last 30 years) and Japan (last 7 or 8 years) needs to be reversed. People, please read the book The Conservative Nanny State (by Dean Baker) and you will learn a good deal.

0 ( +1 / -1 )

Voodoo economics

QE has never succeeded in reaching the central bank’s 2 percent inflation target. Never. Not in the US, not in the UK, and not in Japan. In fact, we can’t be sure that QE boosts inflation at all. Judging from past experience, it certainly doesn’t look like it.

http://www.counterpunch.org/2015/01/23/money-for-stocks-zilch-for-the-economy/

0 ( +2 / -2 )

So pressing the print button on the Euro minting machine is somehow worthy of praise.

Those bankers deserve a medal and maybe they should take a few weeks off in Monoco to recover from their effort.

0 ( +4 / -4 )

The race to the bottom shifts into high gear. Stupid.

6 ( +6 / -0 )

sangets - many hard workers that keep society going that don't share your thoughts.

In fact most worlds are oiled by the workers.

BOJ Kuroda and his ilk just play cards.

1 ( +3 / -2 )

sangetsu 03, you have written well, though I don't suggest rioting but wisdom, diligence, thrift and risk taking on individuals and families. Law and order are basics needed for prosperity.

1 ( +1 / -0 )

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